The next big deadline in payment processing is on the way, but surprisingly not many people in the industry are talking about it. In June 2018, the TLS changeover deadline is coming. It might seem far away, but it’s going to require a lot of work to get your merchants prepared, and it’s best to get started soon. Because if they’re not ready in time, it’ll cost them.
On July 1, 2018, an encryption method called TLS 1.0 will no longer be approved by the Payment Card Industry. Merchants must update to a newer version of TLS by June 30, 2018, or they can no longer process card payments.
What is TLS?
Transport Layer Security (TLS) is an encryption protocol approved by the Payment Card Industry (PCI).
Its details are complex, but what’s important for merchants to understand is that it keeps customer data safe through encryption and ensures no third parties can eavesdrop or tamper with messages when servers and clients communicate. It’s involved in every step of the payment chain. POS systems, processors, acquirers—every step from the merchant to the credit card companies and back.